The stock market experienced a sharp reversal on Thursday, with major indices falling significantly after an early rally. The Dow Jones Industrial Average, which had previously gained over 700 points, ended the day down 386 points.
This downturn followed a fading rally in technology stocks, which had been initially boosted by positive news from Nvidia and recent US jobs data. Nvidia, a key driver of the early gains, closed down 3% after initially surging as much as 5%.
This decline contributed to a broader sell-off in the technology sector, with most chip-related companies also turning negative. The Nasdaq Composite saw a substantial drop of nearly 500 points, and the S&P 500 also lost ground.
The market's reversal occurred despite Nvidia reporting strong quarterly earnings and providing a sales forecast that exceeded analyst expectations. Nvidia's CEO also expressed optimism about artificial intelligence growth, attempting to allay investor concerns.
However, broader market anxieties persist regarding high technology valuations and significant spending on AI. Additionally, recent US jobs data showed a rise in the unemployment rate, creating uncertainty about the labor market and increasing the possibility of a Federal Reserve interest rate cut in December.
